Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Market Election Year Cycles – What to Expect? - 4th Jun 20
Why Solar Stocks Are Rallying Against All Odds - 4th Jun 20
East Asia Will Be a Post-Pandemic Success - 4th Jun 20
Comparing Bitcoin to Other Market Sectors – Risk vs. Value - 4th Jun 20
Covid, Debt and Precious Metals - 3rd Jun 20
Gold-Silver Ratio And Correlation - 3rd Jun 20
The Corona Riots Begin, US Covid-19 Catastrophe Trend Analysis - 3rd Jun 20 -
Stock Market Short-term Top? - 3rd Jun 20
Deflation: Why the "Japanification" of the U.S. Looms Large - 3rd Jun 20
US Stock Market Sets Up Technical Patterns – Pay Attention - 3rd Jun 20
UK Corona Catastrophe Trend Analysis - 2nd Jun 20
US Real Estate Stats Show Big Wave Of Refinancing Is Coming - 2nd Jun 20
Let’s Make Sure This Crisis Doesn’t Go to Waste - 2nd Jun 20
Silver and Gold: Balancing More Than 100 Years Of Debt Abuse - 2nd Jun 20
The importance of effective website design in a business marketing strategy - 2nd Jun 20
AI Mega-trend Tech Stocks Buying Levels Q2 2020 - 1st Jun 20
M2 Velocity Collapses – Could A Bottom In Capital Velocity Be Setting Up? - 1st Jun 20
The Inflation–Deflation Conundrum - 1st Jun 20
AMD 3900XT, 3800XT, 3600XT Refresh Means Zen 3 4000 AMD CPU's Delayed for 5nm Until 2021? - 1st Jun 20
Why Multi-Asset Brokers Like TRADE.com are the Future of Trading - 1st Jun 20
Will Fed‘s Cap On Interest Rates Trigger Gold’s Rally? - 30th May
Is Stock Market Setting Up for a Blow-Off Top? - 29th May 20
Strong Signs In The Mobile Gaming Market - 29th May 20
Last Clap for NHS and Carers, Sheffield UK - 29th May 20
The AI Mega-trend Stocks Investing - When to Sell? - 28th May 20
Trump vs. Biden: What’s at Stake for Precious Metals Investors? - 28th May 20
Stocks: What to Make of the Day-Trading Frenzy - 28th May 20
Why You’ll Never Get Another Stimulus Check - 28th May 20
Implications for Gold – 2007-9 Great Recession vs. 2020 Coronavirus Crisis - 28th May 20
Ray Dalio Suggests USA Is Entering A Period Of Economic Decline And New World Order - 28th May 20
Europe’s Coronavirus Pandemic Dilemma - 28th May 20
I Can't Pay My Payday Loans What Will Happen - 28th May 20
Predictive Modeling Suggests US Stock Markets 12% Over Valued - 27th May 20
Why Stocks Bear Market Rallies Are So Tricky - 27th May 20
Precious Metals Hit Resistance - 27th May 20
Crude Oil Cuts Get Another Saudi Boost as Oil Demand Begins to Show Signs of Life - 27th May 20
Where the Markets are heading after COVID-19? - 27th May 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

Don’t Be Fooled by the “Quiet Season” for Biotech Stocks

Companies / BioTech Jul 24, 2015 - 06:07 PM GMT

By: EWI

Companies

Marc Lichtenfeld writes: My favorite time to work is on weekend mornings before the rest of the house gets up.

I wake up, quietly go down the stairs and turn on the computer. While I’m waiting for it to boot up, I enjoy the peaceful scenery of the marsh outside my living room window. There are always amazing birds out there like sandhill cranes and egrets that are just a few feet from my window.


I’m not sure if it’s the stillness of the morning, the lack of distraction or what, but it’s mornings like these when I’m most productive. And when it comes to the biotech sector, summer offers the same sort of calm... not to mention major buying opportunities.

I’ll explain.

You see, the first half of the year is filled with conferences. It starts with the mother of them all, the J.P. Morgan Healthcare conference in early January. Each year I go to the conference and meet with CEOs, fund managers, analysts and investment bankers. The goal is to obtain new information that helps me lead my readers to great biotech stocks. (You can check out my write-up from this year’s event here.)

As the first half of the year goes on, there are several other conferences at which companies release key data. The American Society of Clinical Oncology Annual Meeting, for example, is the most important cancer conference of the year. It takes place in June and pretty much marks the end of the conference “season.” Tons of clinical trial data is released over a period of just a few days.

But once we hit July, the biotech newsflow typically slows down.

That doesn’t mean there is no news. Companies will still release trial results as it becomes available. But things are much quieter until late December and early January when the J.P. Morgan Conference gets started again.

This is the time of year I love. Without the flurry of activity, just like a good weekend morning, I can catch my breath... to investigate new ideas and perform due diligence on older ones that I haven’t gotten to yet.

Many investors think that because there aren’t any important conferences, you can ignore the biotech sector during the second half of the year. But staying on the sidelines can cause you to miss out on some impressive gains.

Over the past six years - since the bull market started - the Amex Biotech Index rose an average of 14.2% between July 1 and December 31. To compare, the S&P 500 rose an average of 4.7% during the same period.

Average Percent Gain Second Half of the Year 2009-2014

The second half of the year is also a good time to get positioned in stocks you want to be involved in before conference season picks up. Shares start ramping higher in the weeks before the J.P. Morgan conference in anticipation of positive announcements and a rise in the entire sector.

It’s a good idea to start getting into your stocks before everyone else does.

For example, last year I waited until August to recommend Pharmacyclics to subscribers of my biotech trading service, Lightning Trend Trader. Had I recommended it earlier, right after the J.P. Morgan Conference, investors would have paid over $130 per share. But because I waited for the excitement to die down, we were able to get in at about $120 per share.

We exited the position seven months later at $254 after Pharmacyclics agreed to be bought by AbbVie (NYSE: ABBV).

It isn’t just the niche players that can soar during summer months, either. Even some of the big boys took off in the second half of 2014. Celgene (Nasdaq: CELG) gained 29.2%, and Amgen (Nasdaq: AMGN) climbed 33.4%.

So while the summer doldrums might apply to baseball - and the market in general - biotech is a good place to put money to work while you’re snoozing at the beach.

Good investing,

Marc

Source: http://www.investmentu.com/article/detail/46718/celg-amgn-dont-be-fooled-quiet-season-in-biotech-stocks#.VbKaHU3bK0k

http://www.investmentu.com

Copyright © 1999 - 2015 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules